Mexico is marketing a two-part bond deal, looking to issue at least $250m in new 2050 notes and add to the 4.5% 2029s that it sold in January this year.

The bookrunners BBVA, Credit Suisse and Goldman Sachs put the guidance on the new notes around 195bp over US Treasury notes and launched the offer around 193bp, LatinFinance has heard. They also started the retap at 170bp before beginning to take orders at 165bp.

The government said it will use the money to repurchase all its 3.5% 2021 notes and also buy back bonds that come due between 2019 and 2047.

Mexico fielded more than $8bn in orders for a $2bn dollar bond sale in January, the first international debt sale under President Andrés Manuel López Obrador. It followed with a two-part, euro-denominated deal for €2.5bn ($2.79bn) in April and a four-part issue in Japanese yen for ¥165bn ($1.52bn) in June.

Mexico could issue renminbi-denominated bonds in the Chinese market next year along with a possible green bond and the sale of debt in other currencies, such as Swiss francs.

Fitch downgraded Mexico to BBB, two steps above junk status, in early June, citing a weak macroeconomic outlook and the risk to public finances from Pemex's debt problems. The rating agency then cut the state-owned oil company to below investment grade at BB+ with a negative outlook.